September 18, 2019 / 4:35 PM / 2 months ago

Fed might end reserve run-off, ramp up bond purchases: analysts

FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo

NEW YORK (Reuters) - The U.S. Federal Reserve might announce the end of bank reserves run-off, perhaps as early as Wednesday in a move that would help stabilize money markets, J.P. Morgan and UBS economists said on Wednesday.

“If the Fed announces today that they want no more draining of reserves, they will have to buy Treasuries to repaying MBS plus Treasuries to match the growth of currency,” UBS economists wrote in a research note.

Reporting by Richard Leong, Editing by Franklin Paul

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